Automated Fund Transfer

The term Automated fund transfer is a financial transaction that refers to the automatic and computerized way of ensuring funds are sent and received on schedule, without a human factor. It combines ease, convenience, and efficiency in use which helps to make the concept a system of rising popularity with each passing year. It allows customers to transfer funds from one account to another, be it their own account or another individual or business. Paying bills and receiving paychecks can be done much more quickly and easily.

Transferring funds in the past was an entirely manual process which required initiation by an authorized individual of a financial institution. Using an Automated fund transfer you can set up automatic, monthly standing payments. The funds are automatically taken out of the authorized account and forwarded into the destined account on the same day of each month.

The majority of the working population in the 21st century are being paid employees via an automated fund transfer. All the employer needs to do is simply enter the employees banking information into the system and set up a payroll profile that includes the data needed to calculate the payment. Once all the protocols are set within the payroll system, the transfers can be automatically conducted. This eliminates the need to use payroll checks and employees can access their funds before the cheque has even cleared due to the speed and security of the transfer.

Automated fund transfer hosts a wide range of benefits. You don’t have to sit around wasting valuable time writing out checks and payments for wages, salaries, utility bills, rent, and mortgages each month as they will be automatically deducted from your bank account. This then means another convenient bonus being the loss of mountains of dull paperwork.Also, due to the trusted high security of the transfer, no action is required from your employee other than providing their bank details. With the transfer being so quick and automated, all payments can be credited by bank accounts on the same day they are received.

In order to use this system, the bank customer must fill in an enrollment form that allows the bank to automatically transfer your funds. This can be done at the bank or you can register online and activate enrollments through the bank’s automated teller machines.

Read More

Automated Payments via BACS

Businesses take on new features, new technology, new customers and new ideas at a rapid rate. It’s the only way you can survive in any industry. The problem is however, that all this expanding is making everything seem stressful. Even something as straightforward as making payments. If you have a fair number of employees and other outgoing payments then it can become hassle doing everything yourself. You could be making over a hundred payments on a regular basis and need to able to manage cash flow and eliminate human error. As you know, or at least should know, there is an answer.

BACS, or Bankers’ automated clearing services as it was originally named back in 1968, refers to the electronic automated payments by which 95% of UK Payments are made. As the name suggests it sends and receives payments automatically, on schedule and very easily. Originally, payments were made and initiated manually. However, BACS allows you to authorise regular payments so you no longer need to lift a finger to meet them. The owner of the account can authorise the payments and have them taken out of their account automatically on the same day of every month so there are no surprises. There are also no surprises when it comes to changes in policy or amount you will be instantly notified and given an option to proceed or cancel the payments. BACS automated payments can be ended at any point.

Almost all UK employees are being paid via an automated payments transfer due to the simple benefits and use of the service. All the employer needs is the banking information of the employer for the first payment and they can then set up a payroll profile that includes all the data needed to calculate the payment. With the protocols set, the payments can be made automatically at an agreed date and amount. Payroll cheques are not needed and waiting for the cheques to clear electronically takes 3 days. To enter, process and clear it.

There are many benefits to the use of this system. The most obvious being that you no longer need to write out all those cheques by hand. It involves very little paperwork as it is just simply a number on your bank statement. Also, the service is highly secure and the automated payments system BACS, has a record of no errors since it was created in 1968. So overall the system is fast, simple and reliable.

Read More

What is BACS payment system?

Many of you will already know what I’m about to explain. Many of you will have used BACS Payment system at some point even if you didn’t realise. To best explain, we’ll scrap the acronym for a second. Bankers automated clearing services. The key word in there is automated. BACS was created to make the transfer of funds an electronic and automated process thus eliminating need for administration, paperwork, time and effort.

So when you make or receive a payment such as:

•  Credit Card transactions
•  Online shopping
•  Wages and salaries
•  Insurance bills
•  Utility bills
•  Supplier payments
•  Pensions
•  Inland Revenue

You can have money automatically added or deducted from your account without you or any other human having to involve themselves. The process takes 3 banking days to firstly enter it into the system, process it and then clear it.You just have to include details of your bank and account number to use the BACS payment system and it will keep record of it forever until you wish to change it. Then when you identify the details of where you would like a payment to be directed, it will keep a record of them. You then agree a regular date and amount and it will take the same amount on the same date every time until the payment is cleared or you wish to make an alteration. If the receiver of the payment wishes to make a change then you will be instantly notified by your bank on how to proceed. This makes for no surprises. Again you can make changes at any time as well as cancelling your BACS payment system altogether.

BACS payment system can be used by any industry including Banking, Financial services, Cashback firms, Insurance companies etc. It also can benefit an organisation regardless of its size or nature. Larger businesses benefit most with it saving plenty of time, money and resources needed for the vast number of transactions made each day. BACS is reliable and easy to set up whilst having a record of no errors since it was formed in 1968. Benefits of using BACS include:

• Save time, cut costs
• Improved cashflow management
• Highly secure
• Regular automated payments that need little attention
• Less risk of loss or chasing late payments

Read More